Terms : Hide Images
| 10560183666 | Economics | The study of choices made in response to incentives created by unlimited wants and limited resources. | 0 | |
| 10560183667 | Scarcity | The basic problem of economics; not enough resources to meet all the wants so we must choose. | 1 | |
| 10560183668 | Trade-offs | All of the possible options you have when you make a choice. | 2 | |
| 10560183669 | Opportunity Cost | The next best alternative to a choice. The last thing given up or the choice that you would have made if the option you picked wasn't available. | 3 | |
| 10560183670 | Incentives | Natural or man-made consequences that influence a choice. | 4 | |
| 10560183671 | Perverse Incentive | An incentive that backfires and causes the decision maker to do the opposite of what you wanted | 5 | |
| 10560183672 | Utility | The enjoyment, usefulness or satisfaction that you get when you consume something. | 6 | |
| 10560183673 | Utility Maximization | The idea that consumers will use their resources to get the most utility possible. The biggest ratio of marginal benefit to marginal cost. The most utility per dollar. The most bang for their buck. | 7 | |
| 10560183674 | Marginal | Additional or next. | 8 | |
| 10560183675 | Marginal Utility | The additional satisfaction or usefulness that comes when you consume one more unit of something. | 9 | |
| 10560183676 | Marginal Cost/Benefit | The additional cost/benefit that results from a choice. | 10 | |
| 10560183677 | Marginal Analysis | Consumers weigh the gain from the next item consumed (the marginal benefit) against its opportunity cost (marginal cost) and choose the option that gives more benefit than cost. | 11 | |
| 10560183678 | Equilibrium | When two things are in balance. When the marginal cost equals the marginal benefit. When the marginal utility per dollar of good A equals the marginal utility per dollar of good B. | 12 | |
| 10560183679 | Marginal Utility per Dollar | The extra happiness or satisfaction that comes from consuming something, divided by the price of the thing. | 13 | |
| 10560183680 | Diminishing Marginal Utility | The more you consume of anything the less utility you get from additional consumption. | 14 | |
| 10560183681 | Utility Maximizing Rule | People consume goods and services so that the marginal utility per dollar of everything they consume should be in equilibrium. If anything has a higher marginal utility per dollar, consumers will buy more of it until diminishing marginal utility brings it back into equilibrium. |  | 15 |
| 10560183684 | Microeconomics | The study of choices made by SMALL units of analysis: individual consumers, firms and markets. | 16 | |
| 10560183685 | Macroeconomics | The study of choices made by LARGE units of analysis: the economy of an entire country and the response of the government. | 17 | |
| 10560183686 | Factors of Production | The four categories of resources that are used to produce goods and services: land, labor, capital and entrepreneurship. | 18 | |
| 10560183687 | Land | The natural and physical resources used to produce something. The resources that come from the earth and are used up in the production of something. | 19 | |
| 10560183688 | Labor | Physical work done by humans. | 20 | |
| 10560183689 | Human Capital | The training or experience that makes a workers labor more valuable. | 21 | |
| 10560183690 | Physical Capital | The tools, equipment or machinery that makes labor more productive. These things used over and over again in the production process. | 22 | |
| 10560183691 | Entrepreneurship | Taking a risk to start a new business by bringing the other factors of production together to gain profit. | 23 |
